French media group Vivendi has paid 159 million euro for a 15 % stake in multimedia chain Fnac, which will use the money to further support its digital development.
Vivendi also owns the Canal+ Group, Universal Music, online video service Dailymotion and stakes in a wide range of other companies, which could all benefit Fnac. This new strategic partnership should give the company enough muscle to compete with Amazon, while it is also an excellent way to compete with Conforama. That company recently outbid Fnac for the Darty Group, stealing the company right from under Fnac's nose as the deal was almost done.
Vivendi feels it needs distribution partners to spread its content more easily, although it also wants to support Fnac further in its continued progress in Southern Europe and Africa. Vivendi knows these markets well, as it has had a presence there for the past 20 years.